EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0683*
SENATE BILL 683
P1, M5 2lr1397
By: Senator Kagan
Introduced and read first time: February 4, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Renewable Energy for Nonprofit Organizations Loan Program 2
FOR the purpose of establishing the Renewable Energy for Nonprofit Organizations Loan 3
Program in the Maryland Energy Administration; authorizing nonprofit 4
organizations to apply for and obtain loans from the Program for the purchase and 5
installation of qualifying renewable energy systems; establishing the Renewable 6
Energy for Nonprofit Organizations Loan Fund as a special, nonlapsing fund; 7
requiring interest earnings of the Fund to be paid into the Fund; authorizing the 8
Administration to contract with third parties to make, service, or settle loans under 9
the Program; requiring the Administration, on or before a certain date, to establish 10
an application process, set guidelines and considerations for application, selection, 11
and repayment for loans made under the Program, and develop an advertising 12
campaign for the Program; and generally relating to the Renewable Energy for 13
Nonprofit Organizations Loan Program. 14
BY adding to 15
Article – State Government 16
Section 9–2101 through 9–2107 to be under the new subtitle “Subtitle 21. Renewable 17
Energy for Nonprofit Organizations Loan Program” 18
Annotated Code of Maryland 19
(2021 Replacement Volume) 20
BY repealing and reenacting, without amendments, 21
Article – State Finance and Procurement 22
Section 6–226(a)(2)(i) 23
Annotated Code of Maryland 24
(2021 Replacement Volume) 25
BY repealing and reenacting, with amendments, 26
Article – State Finance and Procurement 27
Section 6–226(a)(2)(ii)144. and 145. 28 2 SENATE BILL 683
Annotated Code of Maryland 1
(2021 Replacement Volume) 2
BY adding to 3
Article – State Finance and Procurement 4
Section 6–226(a)(2)(ii)146. 5
Annotated Code of Maryland 6
(2021 Replacement Volume) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – State Government 10
SUBTITLE 21. RENEWABLE ENERGY FOR NONPROFIT ORGANIZATIONS LOAN 11
PROGRAM. 12
9–2101. 13
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(B) “ADMINISTRATION ” MEANS THE MARYLAND ENERGY 16
ADMINISTRATION . 17
(C) “BORROWER” MEANS A NONPROFIT ORGANIZATI ON THAT APPLIES AND 18
QUALIFIES FOR A LOAN UNDER THE PROGRAM. 19
(D) “FUND” MEANS THE RENEWABLE ENERGY FOR NONPROFIT 20
ORGANIZATION S LOAN FUND. 21
(E) “GEOTHERMAL HEATING AN D COOLING SYSTEM ” HAS THE SAME 22
MEANING AS PROVIDED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE. 23
(F) “NONPROFIT ORGANIZATIO N” MEANS AN ORGANIZATION THAT IS 24
EXEMPT FROM FEDERAL INCOME TAX UNDER § 501(C)(3) OF THE INTERNAL 25
REVENUE CODE. 26
(G) “PROGRAM” MEANS THE RENEWABLE ENERGY FOR NONPROFIT 27
ORGANIZATIONS LOAN PROGRAM. 28
(H) “QUALIFYING RENEWABLE ENERGY SYS TEM” MEANS A: 29
(1) GEOTHERMAL HEATING A ND COOLING SYSTEM; OR 30 SENATE BILL 683 3
(2) SOLAR ENERGY SYSTEM , INCLUDING PHOTOVOLTAIC AND SOL AR 1
WATER HEATING SYSTEM S. 2
(I) “SOLAR WATER HEATING S YSTEM” HAS THE SAME MEANING AS 3
PROVIDED IN § 7–701 OF THE PUBLIC UTILITIES ARTICLE. 4
9–2102. 5
THERE IS A RENEWABLE ENERGY FOR NONPROFIT ORGANIZATION S LOAN 6
PROGRAM IN THE ADMINISTRATION . 7
9–2103. 8
THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL ASSISTANCE IN 9
THE FORM OF ZERO –INTEREST LOANS TO NO NPROFIT ORGANIZATION S FOR THE 10
PURCHASE AND INSTALLATION OF QUALIFYING RENEWABLE ENERGY SYS TEMS IN 11
THE STATE. 12
9–2104. 13
THE ADMINISTRATION SHALL : 14
(1) MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM; 15
(2) ADOPT REGULATIONS TO ENSURE THAT LOANS PR OVIDED TO 16
NONPROFIT ORGANIZATI ONS CARRY OUT THE PURPOS E OF THE PROGRAM; AND 17
(3) ATTACH SPECIFIC TERM S TO ANY LOAN THAT A RE CONSIDERED 18
NECESSARY TO ENSURE THAT THE PURPOSE OF THE PROGRAM IS FULFILLE D. 19
9–2105. 20
(A) (1) TO RECEIVE A LOAN UND ER THE PROGRAM, A BORROWER MUST 21
FILE AN APPLICATION WITH THE ADMINISTRATION . 22
(2) THE APPLICATION MUST BE SIGNED BY THE CHI EF OPERATING 23
OFFICER OR AN AUTHORI ZED OFFICER OF THE NONPROFIT ORGANIZATI ON. 24
(B) THE APPLICATION SHALL CONTAIN ANY INFORMAT ION THE 25
ADMINISTRATION DETERM INES IS NECESSARY , INCLUDING: 26
(1) THE PROJECTED COST OF THE QUALIFYING RENEWABLE ENERGY 27 4 SENATE BILL 683
SYSTEM BEING FINANCED THROUGH THE LOAN ; 1
(2) THE LOCATION OF THE PROPERTY WHERE THE Q UALIFYING 2
RENEWABLE ENERGY SYS TEM WILL BE INSTALLE D AND WHETHER THE PR OPERTY IS 3
OWNED OR LEASED BY T HE APPLICANT; AND 4
(3) ANY ADDITIONAL INFOR MATION RELATING TO T HE BORROWER OR 5
THE PROPOSED QUALIFYING RENEWABLE ENERGY SYS TEM BEING FINANCED 6
THROUGH THE LOAN THAT MAY BE REQUIRED BY THE ADMINISTRATION IN ORD ER 7
TO ADMINISTER THE PROGRAM. 8
(C) IN APPROVING AN APPLI CANT, THE ADMINISTRATION SHALL CONSIDER 9
AND GIVE PRIORITY TO AN APPLICANT THAT HA S AN ANNUAL BUDGET O F $1,000,000 10
OR LESS. 11
9–2106. 12
(A) LOANS FROM THE FUND MAY BE USED FOR THE COSTS OF PURCHASING 13
AND INSTALLING A QUALIFYING RENEWABLE ENERGY SYS TEM, INCLUDING THE 14
COSTS OF THE PURCHASE AND INSTALLATION OF ANY NECESSARY ANCILLARY 15
MACHINERY, EQUIPMENT, OR FURNISHINGS . 16
(B) EACH BORROWER SHALL C ONTRIBUTE AT LEAST 10% OF THE COST OF 17
THE QUALIFYING RENEWABLE ENERGY SYS TEM. 18
(C) LOANS MADE UNDER THE PROGRAM SHALL BE REPAYABLE BY THE 19
BORROWER IN ACCORDAN CE WITH A SCHEDULE T HAT THE ADMINISTRATION SETS , 20
WHICH MAY BE ON A DE FERRED PAYMENT BASIS . 21
(D) (1) A BORROWER SHALL PROVI DE ASSURANCES FOR TH E 22
REPAYMENT OF A LOAN . 23
(2) THE ASSURANCES : 24
(I) SHALL INCLUDE A PROM ISSORY NOTE; AND 25
(II) MAY INCLUDE A PLAN FOR REPAYMENT . 26
(E) LOANS MAY BE MADE IN CONJUNCTION WITH , OR IN ADDITION TO , 27
FINANCIAL ASSISTANCE PROVIDED THROUGH OTH ER STATE OR FEDERAL 28
PROGRAMS. 29
9–2107. 30 SENATE BILL 683 5
(A) THERE IS A RENEWABLE ENERGY FOR NONPROFIT ORGANIZATIONS 1
LOAN FUND. 2
(B) THE ADMINISTRATION SHALL ADMINISTER THE FUND. 3
(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 4
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 5
(2) THE STATE TREASURER SHALL HOLD THE FUND, AND THE 6
COMPTROLLER SHALL ACC OUNT FOR THE FUND. 7
(D) THE FUND CONSISTS OF : 8
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE PROGRAM; 9
(2) MONEY RECEIVED FROM ANY PUBLIC OR PRIVAT E SOURCE; 10
(3) INTEREST AND INVESTM ENT EARNINGS ON THE FUND; AND 11
(4) REPAYMENTS AND PREPA YMENTS ON LOANS MADE FROM THE 12
FUND. 13
(E) FOR EACH OF FISCAL YE ARS 2024 THROUGH 2026, THE GOVERNOR 14
SHALL PROVIDE IN THE ANNUAL BUDGET BILL A N APPROPRIATION OF $5,000,000 15
FOR THE FUND. 16
(F) THE FUND MAY BE USED ONLY : 17
(1) TO PAY THE EXPENSES OF THE PROGRAM; AND 18
(2) TO PROVIDE LOANS TO ELIGIBLE BORROWERS . 19
(G) (1) THE STATE TREASURER SHALL INVES T AND REINVEST THE 20
MONEY OF THE FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE 21
INVESTED. 22
(2) ANY INVESTMENT EARNIN GS OF THE FUND SHALL BE PAID INTO 23
THE FUND. 24
(3) ANY REPAYMENT ON LOAN S MADE FROM THE FUND SHALL BE 25
PAID INTO THE FUND. 26
6 SENATE BILL 683
Article – State Finance and Procurement 1
6–226. 2
(a) (2) (i) Notwithstanding any other provision of law, and unless 3
inconsistent with a federal law, grant agreement, or other federal requirement or with the 4
terms of a gift or settlement agreement, net interest on all State money allocated by the 5
State Treasurer under this section to special funds or accounts, and otherwise entitled to 6
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 7
Fund of the State. 8
(ii) The provisions of subparagraph (i) of this paragraph do not apply 9
to the following funds: 10
144. the Health Equity Resource Community Reserve Fund; 11
[and] 12
145. the Access to Counsel in Evictions Special Fund; AND 13
146. THE RENEWABLE ENERGY FOR NONPROFIT 14
ORGANIZATIONS LOAN FUND. 15
SECTION 2. AND BE IT FURTHER ENACTED, That , on or before July 1, 2023, the 16
Maryland Energy Administration shall: 17
(1) establish an application process for loans made under the Renewable 18
Energy for Nonprofit Organizations Loan Program in Title 9, Subtitle 21 of the State 19
Government Article, as enacted by Section 1 of this Act; 20
(2) set guidelines and considerations for application, selection, and 21
repayment that include: 22
(i) nonprofits that own, rather than rent, their buildings; 23
(ii) property size and kilowatt–hours of energy used; 24
(iii) geographic diversity; 25
(iv) ethnic and racial diversity; 26
(v) economic diversity; 27
(vi) nonprofit mission diversity; 28
(vii) access to the borrower’s portion of the cost of the qualifying 29
renewable energy system; and 30
SENATE BILL 683 7
(viii) process and frequency of loan repayment; and 1
(3) develop and implement an advertising campaign for the Program. 2
SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall take 3
effect July 1, 2023. 4
SECTION 4. AND BE IT FURTHER ENACTED, That , except as provided in Section 5
3 of this Act, this Act shall take effect July 1, 2022. 6